1 Executive Summary

2 Analysis Target Inequity Among Clusters

2.1 Revenue Change Analysis

2.2 Health Profile and Profitability Analysis

2.3 Treatment Opportunity Analysis

3 Analysis by Target Inequity Within Clusters

3.1 Revenue Change Analysis

3.2 Health Profile and Profitability Analysis

## 
## Call:
## lm(formula = Revenue ~ `Average LOS` + Cluster, data = drg_data)
## 
## Residuals:
##    Min     1Q Median     3Q    Max 
## -25167  -1134   -231   1023  32612 
## 
## Coefficients:
##               Estimate Std. Error t value             Pr(>|t|)    
## (Intercept)     3581.0      252.9   14.16 < 0.0000000000000002 ***
## `Average LOS`    394.2       52.4    7.53     0.00000000000015 ***
## Cluster 2       3887.7      275.0   14.14 < 0.0000000000000002 ***
## Cluster 3      10759.0      428.9   25.08 < 0.0000000000000002 ***
## Cluster 4      22379.2      571.2   39.18 < 0.0000000000000002 ***
## Cluster 5      55006.3     1381.9   39.80 < 0.0000000000000002 ***
## Cluster 6     150958.7     2566.0   58.83 < 0.0000000000000002 ***
## ---
## Signif. codes:  0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
## 
## Residual standard error: 3120 on 758 degrees of freedom
## Multiple R-squared:  0.942,  Adjusted R-squared:  0.941 
## F-statistic: 2.05e+03 on 6 and 758 DF,  p-value: <0.0000000000000002

3.3 Treatment Opportunity Analysis